Equity Notes

Sunday, 23 September 2007

´Teleommunication Cables are primary utility in the telecom revolution. Their demand is exceeding the supply. Only a handful of players operating in the market. The industry grows at an average rate of 100% in the past 3 years. Expansion plans by the telecom service providers in Tier II and Tier III cities will boost the future revenues. Finolex Cables, Paramount cables and Bhagyanagar India are good picks in this sector.

Sunday, 16 September 2007

The recent boom in housing and construction industry has led to the rise of cement industry compared to past years. The monthly capacity utilisation during the fiscal year 2006-2007 was 94% according to Cement Manufacturers Association (CMA). India is the second largest producer of cement and the industry grows at an average rate of 9.1 %. Domestic consumption is the the biggest revenue mine for the industry. Inorder to control the rising domestic cement prices, the government had stipulated some measures. But these measures had not dettered the growth of the sector. Prism Cement, Dalmia Cement and JK Lakshmi Cement are best bets in this domestic consumption driving growth sector.

Monday, 10 September 2007

The Paper & Pulp processing stocks are highly cyclical and their growth is correlated with GDP. There is a demand of more than 6 Million tonnes anually. The Indian industry supplies around 4.5 Million tonnes and the remaining being imported as per recent Forbes report. Capacity addition is going on across the sector. With Indian GDP growing above 9 %, Tamilnadu Papers & Newsprint Limited (TNPL), JK Paper, and Andhra Pradesh Paper Mills are best stocks in this GDP driven sector.

Sunday, 2 September 2007

As per NASSCOM ( National Association of Software and Services Companies ) reports, the ITES-BPO segment is growing at the rate of 30% year over year. The companies also started expanding to new markets inorder to substantiate the Rupee - Dollor appreciation which cuts their revenues a lot due to more US business. Nortgate Technologies, Allied Digital Services and Allsec Technologies are good picks in this racing sector.